Washington Post: Do Sales-Tax Holidays Boost Back-to-School Shopping?

By Sarah Halzack

It’s back-to-school shopping season, meaning parents everywhere are dragging their kids to the store to stock up on notebooks and supplies or to nab the perfect first-day-of-school outfit.

Sixteen states, including Maryland and Virginia, have offered or will offer some sort of sales tax holiday in July or August, a policy that can give families a financial break at a time of year when they’re likely to be opening their wallets.

But do sales tax holidays actually stimulate consumer spending?

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Matt Gardner, executive director of the Institute on Taxation and Economic Policy, a ­left-leaning think tank, said he believes many states hang on to these policies because they make for good politics.

“That’s part of the reason why lawmakers love them,” Gardner said. “Where else can you come up with a high-visibility tax break that doesn’t cost that much?”

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